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OECD Economic Surveys 2011: Italy by OECD

By OECD

OECD’s periodic monetary survey of the Italian financial system. This 2011 variation gains chapters protecting strengthening the industrial restoration and financial sustainability, the contribution of universities to monetary development, and getting environmental coverage costs and governance correct.

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More fully implementing the polluter pays principle could also justify wider use of environmentally-related taxation. 3. Summary of recommendations to strengthen the economic recovery and fiscal sustainability Labour market: ● Over time, replacement rates and eligibility periods for the CIG wage support schemes should be reduced. ● In the longer term, seek to move towards a social protection system based on flexsecurity principles, with unemployment and social security benefits complemented by and coordinated with active labour market policy.

The computations are based on the national baseline scenario presented in the 2011-13 budget (Public Finance Decision).

The simple sum of public and private debt, where Greece would show lower debt than Italy while Spain is at a similar level) should be avoided. 38 OECD ECONOMIC SURVEYS: ITALY © OECD 2011 1. STRENGTHENING THE ECONOMIC RECOVERY AND FISCAL SUSTAINABILITY Fiscal consolidation must continue for the foreseeable future In the short- to medium-term, the very high burden of public debt may leave Italy subject to fiscal vulnerabilities. 2, are prudent and must be implemented. In the case of slippages and/or heightened risks of contagion, the first priority would be to tighten enforcement of existing spending plans, with further cuts if necessary.

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